4 Re Engineering Supply Chain

8/8/2019 4 Re Engineering Supply Chain

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Process View of SCM


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Re-Engineering Roadmap Understanding existing Supply Chain - -

-Relationship Mapping

-Identify Processes

-Develop Process flow chart

Improving Internal Supply Chain

Improving External Supply Chain Improve Inter-organizational Supply Chain

Reconfigure Supply chain Information Systems


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Re-Engineering Roadmap

Finding Sweet Spots and financial

impacts

Creating Collaboration and trust in

Supply Chain

Customer -Supplier Integration in to new

Product Development

Managing Change


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What is

Processes Mapping

A business process is chain of logically

connected activities that utilizes

enterprise's resources to refine or

transform an object ( physical or mental)

in to an output (result)

Every activity in a business process hasinput-action-output


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Understanding existing processes

Relationship Mapping:Who is the customer of the process and what is the

output from it?Who is the supplier of the process and what is the

input to it?

What are the requirements for the input and outputof the process?

What are internal flows of activities of the process?

Construct detailed flow charts ofactivities involved in the processes


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The Relationship Map


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Stores Requisition problemCustomers speak to the dealer in the field, who

completes a requisition. A manufacturing plant

manager has been receiving many complaintsfrom dealers regarding the amount of timerequired to process their orders through itsstorage warehouse. The firm decided to studythe process in more detail and interviewedpeople involved in the process to describe atypical order processing . The process flowchart is given below:


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Stores RequisitionP

rocess


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Construct Process Flow Charts


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Process Flow Chart- an Example


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Analysis and ImprovingP

rocesses

Examine each decision symbol: Is this a checking activity? Is it complete check? Is it

a redundant check? Could this be eliminated? Examine each delay symbol:

-What is the cause of delay? How long?What problemdoes it create? How can you reduce or avoid it?

Examine each activity symbol:What is the value of activity relative to cost? Is it

redundant? How can you reduce time of activity?


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Analysis and Improving

Processes

Examine each document symbol: Is this necessary? How is up dated? Does it help

improve or monitor process?

Examine each reworksymbol:-How long is rework loop ?( steps, lost time, resources

needed et.) How can you avoid it? Would we need to

perform these activities if there was no failure?


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Inter-functional process review

workshop

Each functional team leader reviews,

documents and agrees with the process

map of its portion of supply chain

All functional team members develop an

over all internal supply chain map

Review each symbol jointly in the

meeting and find solutions


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Inter-organizational Supply Chain

Workshop

Establishing contacts key Supply Chain Cos

Gaining insight in to their current practices

Develop their supply chain process map

Joint project between supply chain members

Bench marking session- review competitorspractices


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Inter-organizational Supply

ChainWorkshop

Who should be invited for this workshop?

Why should your suppliers cooperate in

this?


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Inter-organizational Supply Chain

Workshop

It is absolutely essential

that each participant findsthis process beneficial to

them


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Supply Chain Performance

Parameters Products & Services offered

Sales

Market Share

Cost

Quality

Inventory Holding

Delivery time

Cycle time Assets Utilized

Responsiveness

Customer service


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Causes of long Cycle time JustWaiting between two processes

Non-value added activity

Serial versus parallel operations Repeat Process activity

Batching

Excessive Control

Lack of synchronization in material movements

Ambiguous Goals and objectives

Poorly designed procedures and forms


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Causes of long Cycle time

Outdated technology

Lack of information

Poor communication Limited coordination

Lack of or ineffective training


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CycleT

ime Reduction Candidates

Material Planning and Scheduling

Purchase order Cycle

Inbound Transportation

Material receipt/inspection

Material review activities Manufacturing Process


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CycleT

ime Reduction Candidates

Customer order Processing

Warehousing Operations

Outbound Transportation

Return Materials/reverse logistics


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CycleT

ime ReductionP

rocess Form a cross function cycle time reduction

team and appoint a leader.

Understand well current process & timings

Identify cycle time reduction opportunities

Implement team recommendations

Measure revised process cycle timings Conduct continuous improvements


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Four Level SCOR Model Supply Chain Operations Research Model

developed by Supply Chain Members Council,USA

Level-I: Define 4 key process- plan, source, make,deliver

Level-II: 26 Core Supply Chain process categories

Level-III:P

rovide partners information useful to them Level-IV: Focus implementing supply chain Processimprovements


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Integrating and Managing

Information Flows Resources for improved information flow

Management

-MRP-DRP

-ERM( Integrating all processes)

-Internet/Intranet-Web based Communication

-Bar Coding, EDI, RFID


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Finding Sweet Financial Spots Understanding your Core Competence

SWOT Analysis

Insourcing v/s Outsourcing decision for

competitive edge


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Advantages/disadvantages of

outsourcing


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Critical Factor for Success of

Re-engineering

What do you think are Critical Factor for

Success of Re-engineering in a Company

?


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Creating Collaboration and Trust

with Supply Chain partners Thumb Rule-1: Follow through on your

commitments and act predictably. (Reliability)

T

humb Rule-2: Make certain that your organizationand your supply chain partner have assignedcompetent, knowledgeable and experienced people tomanage the alliance. (Competence)

Thumb Rule-3: In selecting the primary interface

with your supply chain partner, choose an individualwho has extensive knowledge of function, good peopleskill and good character. ( Good will)


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..Creating Collaboration and

Trust with Supply Chain partners

Thumb Rule-4: Perception of vulnerability needs tobe carefully managed through information sharing,

which assures the other partner that its interests arebeing protected.( Vulnerability)

Thumb Rule-5: Show genuine responsiveness toyour partners needs and demand the same from your

partner. Be willing to go extra mile if required. (Loyalty)


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Customer Supplier Integration in

to New Product Development


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Process Model for Supplier

Integration


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Managing Change To be covered in Admin Module

Cover Now ?

Documents

4 Re Engineering Supply Chain